REG-XP Power Ltd: Re: Comet Legal Action - Judgement on legal fees and interest

XP PowerAnnouncement

30/01/2025 07:15

30 January 2025

 

 

XP Power Limited

(`XP Power' or `the Group')

 

Re: Comet Legal Action - Judgement on legal fees and interest

 

XP Power, one of the world's leading developers and manufacturers of critical
power control components to the electronics industry, announces an update on
the US legal case with Comet Technologies USA Inc ("Comet") relating to legal
fees and interest.

 

Yesterday the trial judge ruled that plaintiff's legal fees and pre-judgement
interest of c.$19m in total are to be paid by the Group. While there was
always a range of potential outcomes, this ruling was disappointing and has
required us to reconsider our provision, increasing it by c.$10m to include
pre and post judgement interest for the expected period until the appeal
concludes. When the legal fees and interest are paid, Net Debt : Adjusted
EBITDA is expected to increase by c.0.35x and on a pro-forma basis the 2024
year-end position is c.2.65x.

 

XP Power has already lodged documentation for an appeal against the original
judgement and now plans to progress the appeal process. Further announcements
will be made as appropriate.

 

Enquiries:

 

 XP Power                                                    
 Gavin Griggs, Chief Executive Officer  +44 (0)118 984 5515  
 Matt Webb, Chief Financial Officer     +44 (0)118 984 5515  
                                                             
 Citigate Dewe Rogerson                                      
 Kevin Smith/Lucy Gibbs                 +44 (0)207 638 9571  

 

 

XP Power designs and manufactures power controllers, the essential hardware
component in every piece of electrical equipment that converts power from the
electricity grid into the right form for equipment to function. Power
controllers are critical for optimal delivery in challenging environments but
are a small part of the overall customer product cost.

 

XP Power typically designs power control solutions into the end products of
major blue-chip OEMs, with a focus on Semiconductor Manufacturing Equipment
(circa 38% of revenue in 2024), Healthcare (circa 24% revenue in 2024) and
Industrial Technology (circa 38% of revenue in 2024) sectors. Once designed
into a programme, XP Power has a revenue annuity over the life cycle of the
customer's product which is typically five to seven years depending on the
industry sector. XP Power has invested in research and development and its own
manufacturing facilities in China, North America, and Vietnam, to develop a
range of tailored products based on its own intellectual property that provide
its customers with significantly improved functionality and efficiency.

 

Headquartered in Singapore and listed on the Main Market of the London Stock
Exchange since 2000, XP Power is a constituent of the FTSE All Share Index. XP
Power serves a global blue-chip customer base from over 30 locations in
Europe, North America, and Asia.

 

For further information, please visit www.xppowerplc.com.



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